Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter but lower than a year ago. Operating cash flow and free cash flow weakened substantially, resulting in a much lower margin.
- Operating cash flow decreased significantly relative to both the prior quarter and the same quarter last year. Capital expenditure also declined, but the reduction in operating cash flow drove free cash flow sharply lower, compressing the margin.
- Compared to the immediately preceding quarter, all cash flow metrics worsened. Versus the same quarter one year earlier, revenue and cash flows were lower, with a notably weaker free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$130.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$482.0M
Cash generated by operations before capital spending.
CapEx
$352.0M
Capital spending and related asset purchases.
FCF margin
1.3%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2022-06-30 | $14.6B | $1.6B | $532.0M | $1.1B | 7.3% |
| 2022-09-30 | $12.3B | $1.4B | $439.0M | $975.0M | 8.0% |
| 2022-12-31 | $10.2B | $1.6B | $473.0M | $1.1B | 11.1% |
| 2023-03-31 | $10.2B | $482.0M | $352.0M | $130.0M | 1.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 27.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating cash flow decline
Operating cash flow was lower than both the prior quarter and the year-ago quarter, while capital expenditure decreased less proportionally. The drop in operating cash flow was the main factor behind the reduction in free cash flow.
The weaker operating cash flow significantly compressed free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow decreased significantly relative to both the prior quarter and the same quarter last year. Capital expenditure also declined, but the reduction in operating cash flow drove free cash flow sharply lower, compressing the margin.
Compared to the immediately preceding quarter, all cash flow metrics worsened. Versus the same quarter one year earlier, revenue and cash flows were lower, with a notably weaker free cash flow margin.
Monitor the trajectory of operating cash flow, as it is the primary source of free cash flow.